CAIXA GERAL DE DEPÓSITOS (PORTUGAL) AND
TECHNOLOGICA (BULGARIA): ANALYZING COMPANIES’
CORPORATE SOCIAL RESPONSIBILITY
IN TWO EUROPEAN COUNTRIES
Dr. Desislava Yordanova, Dr. Manuel Coelho,
Prof. Dr. José António Filipe3, Prof. Dr. Manuel Alberto M. Ferreira3
Sofia University “St. Kliment Ohridski” (BULGARIA) 2
ISEG/UTL, 3ISCTE-Lisbon University Institute (PORTUGAL)
E-mails: d_yordanova@abv.bg, coelho@iseg.utl.pt, jose.filipe@iscte.pt, manuel.ferreira@iscte.pt
ABSTRACT
The studies in the area of Corporate Social Responsibility are very relevant to understand why companies are concerned with its implementation in the company. Besides, theoretical developments on this matter show that progressively companies are concerned about their performance on this subject and about reaching their objectives involving CSR. Corporate Social Responsibility should have self-regulating mechanisms through which the business would be monitored and companies should be ensure that law is guaranteed as far as ethical standards and international norms. According to the 2001 European Commission Green Paper, Social Responsibility conceptualization is associated with the idea of companies deciding, in a voluntary base, to contribute for a fair society and a cleaner environment. Caixa Geral de Depósitos (Portugal) and TechnoLogica (Bulgaria) are important companies concerned with the development of CSR activities and have some very interesting results in this area.
Key words: Social Responsibility, Sustainable Development, Environmental Sustainability, Caixa Geral de Depósitos, TechnoLogica
INTRODUCTION
Corporate Social Responsibility is nowadays so important that many companies feel a strong need of committing with society and environmental concerns. Companies in Portugal have a long tradition in social intervention which remounts to the century XV and the foundation of the Mercies. Recently environmental concerns have contributed to the important performance and developments in CSR area in some important Portuguese companies. The development of many companies’ strategies move across the CSR objectives. In Bulgaria, compa-nies are going through new realities and CSR is going as a new experience to implement a new attitude facing the new reality. TechnoLogica is enlarging its determination and motivation to go by new practices and come close to customers. TechnoLogica recognizes that social benefit is important to develop the company’s strategy and shall be assumed in every action TechnoLogica undertakes.
The purpose of this study is to emphasize the perspective of giving sustainability to the formats of the more general concept of social responsibility applied to two companies: one in Portugal and another one in Bulgaria. Through the case studies of Caixa Geral de Depósitos and TechnoLogica, it is intended to analyze the strengths and weaknesses of the development of measures of social responsibility in this area in both countries.
CSR IN PORTUGAL AND BULGARIA
In Portugal, the tradition of social intervention dates from the fifteenth century and the founding of Mercies. However, environmental issues have never been felt in a sensitive position in responsible business, given the delay of industrial development which lasted up to 60’s.
Although traditionally, social responsibility has come to be practiced by larger firms in an informal manner in Portugal, the emergence of "social responsibility" as a theme of autonomous management brought a new perspective on the part of some agents which led some firms with greater economic dynamism to become interested in environmental issues, beyond the more traditional paternalistic sense which put the accent on the relationship with employees.
During the last 20 years Bulgaria has experienced profound economic, political, social and institutional changes related to the transition from planned to market economy. In Bulgaria Corporate Social Responsibility (CSR) is a new phenomenon for organization, which was actively promoted and encouraged by foreign organizations and institutions as well as NGOs operating in Bulgaria. The Bulgarian Business Leaders Forum (BBLF) was the first organization that has drawn the public attention to CSR. BBLF works actively for the popularization of CSR and for educating Bulgarian managers and the society in the CRS values. In 2003 BBLF launches Annual Awards in an effort to promote the responsible behavior of business in Bulgaria. The main objective of the Awards is to give credit to companies with remarkable record in the field of corporate social responsibility and encourage other business leaders to start or further develop socially beneficial activities.
In 2009, the Bulgarian government elaborated a National Strategy for CSR for 2009-2013 and a plan for its implementation for 2009-2010. Drawing upon the Lisbon Strategy as well as other documents of the European
Commission, the aim of the Strategy is to create and strengthen a supportive environment for practicing CSR. The plan for its implementation for 2009-2010 includes measures for enhancing information about CSR and capacity for implementing CSR practices of Bulgarian organization as well as for creating legal and institutional environment for practicing CSR.
CGD
In 2009, the Caixa Geral de Depósitos (from now on “Caixa” or “CGD”) joined the United Nations Environmental Programme for the Financial Sector (UNEP FI) and became the first Portuguese bank to join this program.
Since 1991, when it was created, the UNEP FI works the themes of sustainability in the financial sector with the aim of promoting good practices in the international financial institutions. This program reflects the recognition by the United Nations concerning the role of this sector in promoting sustainable development in that the processes of financial intermediation have repercussions in investment programs and, indirectly, in the allocation of natural resources.
Sustainable Development is aimed at rational utilization of natural resources while maintaining capacity for renewal and ecological stability and respect for inter-generational solidarity. According to the Brundtland Report (1987), sustainable development is one that meets present needs without compromising the ability of future generations to meet their needs.
The accent on the issue of environmental sustainability and eliminating poverty are key aspects of this new vision, which is raising the banner of growth with quality of life based on three pillars: economy, society and environment, combined with the issues of governance.
This adherence to the Program highlights Caixa concerns with the long term and confirmed its activity in supporting environmental sustainability. The basis is the conviction that the principles of Sustainable Development will form the basis of guidelines for future development. According to Mr. Faria de Oliveira, President of CGD, the times where structural changes are the ethical, environmental and social have been gaining weight. There are conditions to innovate and develop a better society and that membership of the UNEP-FI is a public commitment to sustainable development.
Note that this commitment of CGD with environmental sustainability and Corporate Social Responsibility in general seems to be, according to the statements of those responsible, the "genetic code" of the company / group.
Built in 1880, the Caixa Económica Portuguesa, as then called, revealed at once their social concerns being intended to receive the savings of the less wealthy and providing a "nest egg" in the long term. By 1885, with the reform, Caixa Nacional de Aposentações (National Fund for Retirement) was born. After, Caixa was going to be established as Caixa Geral de Depósitos e Instituições de Previdência. In the Estado Novo regime, Caixa became a key institution in the operations of agricultural credit and industrial and in 1969 assumed a central role in housing loans. All these aspects permit to understand the role that public authorities were successively assigning to the Caixa Group, the largest institution of public nature on the financial sector.
As you can read in a text of the Office of Historical Heritage (Gabinete do Património Histórico) of CGD - "From the History of the institution over 133 years, Caixa served various aspects of Portuguese society, having had in mind the moral principle of social intervention."
The great values that guide the work of Caixa and are the basis of its performance in terms of Social Responsibility is appreciable in the Code of Conduct issued by the institution and designated in the Good Government report.
The commitment of Caixa is immediately identifiable, if we hold fast to its mission. According to published texts, CGD's Mission is:
MISSION:
- Consolidating its position as a Group structuring the Portuguese financial system, distinguished by strong accountability and relevance of its contribution to economic development and to strengthen the competitiveness, innovation and internationalization of Portuguese companies;
- The stability and soundness of the financial system;
- As market leader, finding a balanced development between profitability, growth and financial strength, always within a prudent risk management.
In this context, the Group's strategic priorities defined for the three years 2008 -2010 included:
- The development of a human resources policy based on the pillars of Values and Culture of Enterprise, Knowledge, Communication and Performance;
- The supporting of the cultural and social development, promoting sustainability and being a reference to the Good Government in Portugal
There is a set of clearly identifiable concerns about the wishes that pursue social responsibility. These guidelines are then translated into 19 management priorities that include, among others: - To boost the performance at the cultural level, and promote social sustainability;
- Proactive in developing best practice governance and ethical conduct;
The Code of Conduct establishes the rules and principles of professional conduct, being that the CGD staff on business principles of ethics, accuracy, truth, transparency, stability and security in relationships with customers. Caixa has adopted the principles of Good Governance and public sector undertakings (Council of Ministers Resolution 49/2007) and undertook initiatives for compliance including preparation of an annual business plan by
continuing to implement their mission and objectives of company as well as a report of compliance with these objectives and integrating sustainability analysis in the economic, social and environmental.
Caixa 2010, Zero Carbon Strategy
By the end of the twentieth century humanity faces the challenge of climate change and overuse of natural resources, issues that dominate the UN agenda. This has promoted a fundamental discussion about a new development model.
As we saw, according to the Brundtland Report this new model is identified with a development that meets present needs without compromising the ability of future generations to meet their own needs, ie, the Sustainable Development.
The scientific evidence of the phenomenon of climate change (refer to the reports of the IPCC-Intergovernmental Panel on Climate Change): disasters, suggest a range of impacts that are not only environmental but also economic and social. The impacts are being felt in politics, markets and quality of life, affecting employees and customers of Caixa, worldwide.
So, to combat this we must build an economy with lower emissions of GHG (greenhouse gases) per unit of wealth created. For the EU this may represent, in the spirit of post-Kyoto negotiations a 20% reduction in emissions in 2020, compared with 1990 levels, or even 30% if accompanied by other developed countries. According to the negotiation of the G8 summit of June 2007 the reduction is expected to reach 50% by 2050 (U.S. listed.)
It's clear that this new reality changes the logic of economic decision imposing new requirements for investment and risk management, while encouraging new markets (such as renewable energy) and adding new financial solutions. Caixa sees this and recognizes this as an opportunity.
In this line, promoted by Caixa since 2007, the program Caixa Zero Carbon is a strategic program that aims to help reduce the environmental impact of its activities while it induces good practices among its employees, customers and society in general.
These are ambitious objectives involving:
- More knowledge about the carbon footprint / emission levels of the activities of Caixa to allow the setting of reduction goals;
- More economic and energy efficiency, including through the adoption of measures to gain the use of renewable energy,
- Monitoring and evaluation of performance at this level;
- And new business development to strengthen the group's position in the domestic market - with new solutions to support and incentives to customers of cash to change their energy bill, support for demonstration projects in the fields of energy efficiency and promoting education and literacy carbon to employees and customers.
This action, through a course of action and dissemination, consistent and coherent, around climate change to help differentiate the profile of Social Responsibility, Caixa intends to improve the reputation of its brand.
The Caixa Zero Carbon Program 2010 implements the strategy acting on five axes: a) Information - Case reports on carbon reductions
b) Internal Action - Caixa reduces energy consumption and carbon emissions c) Compensation - Caixa offsets carbon emissions inevitable
d) Market - Caixa promotes low carbon business
e) Communication - Communicate through Caixa Carbono Zero
The Projects
-Central Solar Térmica (Thermal Solar Central)
One of the most visible projects to the reduction of CO2 emissions was the installation of solar panels on the roof of the headquarters building of CGD, transforming this building, located in Lisbon, in a huge Central Solar Thermal.
The installation of one hundred and fifty of solar collectors on the roof (1 600 m2) of the headquarters building at Avenida Joao XXI, allows the production of energy used to heat water for air conditioning systems and plumbing. In total, there is a saving of more than 1 million kWh of electricity per year (about 5% of global consumption).
The plant has a system for monitoring the energy produced, allowing to analyze the performance of the facility, and outlining a possible expansion of the use of solar energy to other buildings in Caixa.
The Thermal Solar Central CGD, along with other energy efficiency measures already implemented, results in electricity savings equivalent to annual consumption of about 2,000 people, thus preventing the annual emission of more than 1,700 tonnes of CO2.
This office building has a Certificate of Energy and the Ambient Air Quality, issued by ADENE-Energy Agency, with the highest A + rating.
The policy of energy saving is extensible to the network of agencies that is being gradually equipped with PV.
-Dia a Dia Carbono Zero (Day to Day Zero Carbon)
Along with new technology and with the direct participation of employees, Caixa has been producing a kind of guide on best environmental practices to adopt in our daily lives, whether at work or at home, which is available (PDF) in the site of Caixa.
The mission of awareness extends to the general public through the production of the TV show “O Planeta Agradece” (The Planet Appreciates), an item on the radio and a “blogue”. This program is part of the Caixa Zero Carbon Program 2010, and aims to promote behaviours that help Caixa to reduce her own emissions. Simultaneously, it is to be replicated in a larger universe, to help the country meet its international commitments in this matter. Day by Day Zero Carbon is a program involving customers and employees around the world in combating climate change.
-Floresta Caixa (Caixa Forest)
Of vital importance to the planet as CO2 sinks, the forests have, also, been addressed in the program. The forests are a major renewable resource of Europe and the most important component of nature within EU. In Portugal (occupying nearly 40% of the country) forest constitutes an important area of activity that involves more than 150 thousand workers. Forests are also essential in promoting biodiversity, protection against soil erosion, correction of water regimes and air quality. It is therefore essential to promote effective forest management as a way to preserve and foster an important renewable resource, while contributing to meeting the emission limits set for Portugal under the Kyoto Protocol.
The program FLORESTA CAIXA represents a set of initiatives aimed to contribute to the construction of a new forest in Portugal. These are developed in partnership with some major environmental groups and linked to the stakeholders in the sector such as QUERCUS and ANEFA (National Association of Business - Agriculture, Forestry and the Environment).
The actions that the program will materialize: recovery of areas burned and the creation of sustainable forests with preservation of native species. It includes several projects for forestation and raising awareness of the importance of the forest.
-Environmental Awareness
In the field of the FORESTENVIRONMENTALAWARENESS-CAIXA includes initiatives aimed to promote
the adoption of appropriate environmental behaviour. In addition to the above set of actions we can cite the sponsorship of the Conference of Al Gore in our country and Portugal's edition of the book "An Inconvenient Truth." In the "lounge" area of the headquarters of Caixa there are several brochures available on forests and on the theme of climate change. Shares of Christmas "for a better future" call attention in this court, to the importance of forest preservation… and for indigenous species to be preserved.
It also counts the support measures to forestation with children and young people from schools, participation of employees and their families.
-Cartão Caixa Carbono Zero (Caixa Card Zero Carbon)
One of the recent innovations in this field gives the name of Caixa Card Zero Carbon (the card that embedded in nature, according to advertising copy CGD) and represents another step in implementing the strategy of CGD in combating Climate Change. It is a card truly innovative, unique of its kind in Portugal.
Integrated in the Program Caixa Zero Carbon 2010 (Market axis), this Caixa Card Zero Carbon intended to be a means of encouraging a lifestyle of low carbon and allows its user to offset emissions that can not avoid.
The Card provides special conditions in the purchase of goods and services with greater energy efficiency and better environmental performance, providing a solution that simultaneously reduces emissions, preserving the planet, and provides a significant financial savings for its user. Presents a set of features that make it attractive for the user, in particular, on favourable terms involving the return of annuities according to their original use and the amounts reached in the transactions, the flexibility of the conditions and terms of payment and in consideration of an interest rate of operations truly competitive.
Caixa Card Zero Carbon is a genuine product of low carbon, in which key elements were designed to minimize the effects of climate change. Firstly because it is a credit card made from recycled material, free of chlorine and that fosters communication by electronic means, thus thought to cause minimal effects on climate. By contributing to projects that absorb or prevent CO2, the card offers a portfolio of carbon credits to offset unavoidable emissions permits, making the day-to-day more “user-friendly” environment. In choosing this card, customers have access to special discounts on the purchase of goods and services more energy efficient, including a cash-back program that offers them carbon credits to offset emissions. The Card gives therefore CO2 credits, which means that the amount accumulated in the cash-back program is channelled to projects that absorb or prevent carbon dioxide. Emissions from the production and distribution of the card are quantified and compensated. To that extent, it can be said that the name Card Zero Carbon is justified-it is a card with no effect on climate.
Tapada Nacional de Mafra is the first project to benefit from funds provided by the Card Box Carbon
Zero.This is an area of 50 hectares, which is strongly affected by the fires of 2003. Integrating project in forest area, the Card came enable the proper management of this area, with special attention to newly installed stands and processes of natural regeneration. It is intended to ensure sustainable forestry, fire protection and enhancement of biodiversity. The project ensured the monitoring of the action over 30 years. The project includes the development and implementation of a management plan that will allow carbon sequestration of a total of about 3000 tons. CO2 equivalent (CO2e).
The recent innovation in this area is called Cash Carbon Calculator. Installed at the site of the institution allows the user to calculate their carbon footprint quantifying the emissions associated with daily life from issues that relate to two key areas: housing (domestic consumption) and mobility (use of means of transport).
-Support Scientific Research
Along with these actions that directly target the environmental, Caixa is integrating its activities in the promotion of scientific research as central to the evolution of knowledge and change attitudes and mentalities.
The role of education is central to sustainable development. Hence: Firstly, and according to the desideratum of increasing the financial literacy of potential users, Caixa has created mechanisms that are simple, practical and accessible, to encourage savings. This has created a financial education program, called Positive
Balance, with access to the Net (www.saldopositivo.cgd.pt) to customers and non-customers. The contents are
useful application in the daily management of the family budget, and include suggestions for energy saving approach of diagnostic tools to prevent financial indebtedness, financial products etc.
For young people there is a Program – Ciclo da Poupança (Cycle of Savings) which points to the need for savings and simple formulas to achieve them. It led in 2007 to a game with hundreds of agencies and students of 1st and 2nd cycles, on the celebrations of World Savings.
Most interesting, the Programa Nova Geração de Cientistas Polares (New Generation of Polar Scientists Programme) results of a collaboration with the Portuguese for the International Polar Year. It assigns scholarships to young scientists for studies to focus on relevant issues of Climate Change and its effects (Biology, Physics of the Atmosphere, etc.) on Antarctica Region. Simultaneously, Portuguese started a major campaign in Antarctica with the participation of Portuguese scientists held until 2009, Nov. The Committee for the polar year, consisting of researchers from several universities in Portugal and its action promotes the integration of young scientists in the work of teams who are developing this area of science, creating critical mass and promoting the image of the Portuguese Science World.
The lectures “Um Alerta Global para o Desenvolvimento Sustentável” ("A Global Warning for Sustainable Development"): in this field, there are alerts for sustainable development by supporting a series of conferences in Culturgest promoting discussion of relevant issues and with the participation of some of the most significant researchers (with themes such as Climate Change, Human Rights, Sustainable Development and the Information Society, Architecture responsible).
A way that promotes the development of skills in the area still refers to the Concurso de Design de
Mobiliário com Materiais Reciclados (Furniture Design Competition with Recycled Materials) that challenged the
young people of Portuguese universities and polytechnics to display their talents, contributing to the development of proposals for Eco-Design and thereby furthering rows of recycling.
And others:
- Publications ( the magazine “Azul”),
- Renewable energy credit programs, with special conditions for acquisition and installation of equipment; - My Energy Program, in partnership with EDP - integrated solution of micro-generation solar thermal, photovoltaic and wind power for small and medium consumers.
Obviously that environmental sustainability should not be disconnected from the other two pillars of development: economic and social. We do not want to enlarge this communication, but we would like to stress the importance of Caixa’s solidarity actions, as well as actions to support culture and sport of its employees and the Community, or their efforts on the transparency of information.
TECHNOLOGICA
TechnoLogica is one of the biggest Bulgarian software companies. TechnoLogica’s business is to help companies and organizations to implement and to take advantage of new information technologies in their developments and projects. According to the last two CBN Bulgaria ICT Ranks™ TechnoLogica is the largest Bulgarian-owned software company. TechnoLogica has been active on the Bulgarian market since 1990. Today, the company has offices in Sofia, Plovdiv, Varna and Skopje (Macedonia) and is a member of various business associations and chambers. The company Mission is:
In order to stay competitive as the provider of technology transfer services, TechnoLogica follows a target-oriented policy of innovation by anticipatory implementation, adaptation and further development of new information technologies and building of technological software tools. TechnoLogica is an intellectual capital company, which actively participates in the development of the knowledge-based economy. Among the most recent acknowledgements of TechnoLogica’s achievement in this area are the 2008 first prizes in the „Investor in Knowledge” category awarded by the Bulgarian Business Leaders Forum and in the „Knowledge Management” category in the annual HR awards of the Bulgarian Human Resources Management and Development Association. Business ethics makes an integral part of TechnoLogica's corporate culture, because if the Company wants to be sought after as a valuable technological partner in the projects of its partners, its name must stand for a guarantee of high technological level and exceptional business ethics. The business of TechnoLogica as a technological
MISSION:
To meet and exceed clients’ expectations by significantly improving their activity through the implementation of leading information technologies.
partner requires that the Company be easily accepted by the other players in the field of information technologies. The Business Ethics Certificate was awarded to TechnoLogica personally by Prince Charles in the year of 2003.
TechnoLogica does business that is socially responsible. The management of the Company recognizes social benefit as a touchstone of every action TechnoLogica undertakes. As a company that is dedicated to innovation, TechnoLogica considers social issues as providing challenges and opportunities.
Young People and Education Benefit Projects
TechnoLogica traditionally supports and consistently accomplishes the idea for close cooperation between business and the academic circles. The management realizes the necessity for the business to contribute to the quality education and professional fulfillment of the young people in Bulgaria as well as the benefits of such cooperation for TechnoLogica’s strategy realization. TechnoLogica has long years of experience in cooperating with the academic circles. Yet in 1993 the first summer internship of students from the American University took place thanks to the initiative of TechnoLogica. The company has made donations to almost all universities of Bulgaria and aims at being a catalyst for a stable cooperation between business and education. TechnoLogica participates actively in the Business Master Classes organized by the Bulgarian Business Leaders Forum (BBLF) with lecturers in the Information Technologies and Human Resources modules.
The latest program of the company for the benefit of young people and education is being developed at the Faculty of Mathematics and Informatics (FMI) of the Sofia University “Kliment Ohridski”. The program consists of several projects related not only to the students but also to their professors. At the TechnoLogica Education Centre for Professionals we regularly organize workshops for students from the Master’s Programs at the FMI. It is already a tradition that certified practicing professors train the faculty professors and system administrators in the newest technologies free of charge. This is done in order to facilitate the process of implementing new technologies and also to provide resources for it. Following this trend a specialized free of charge training in Microsoft starts from academic year 2006/2007. This training is a part of the approved academic curriculum and is lead by certified professionals from TechnoLogica. TechnoLogica regularly accepts trainees from the faculty who get the opportunity to continue working at the company on full time employment agreements after the completion of their internship programs. In 2006 TechnoLogica announced a contest for “The Lecturer in a Subject in the Information Systems Field Best Aappraised by the Students” with a prize fund amounting to 5 000 leva.
As a company specialized mainly in information systems development, by means of this annual award TechnoLogica expresses its gratitude and respect to the professors who have contributed to teaching the students useful knowledge that could later on be used in their practical work. Through direct voting on the FMI web site the students chose the three lecturers with the greatest contribution to their professional growth as IT specialists. A challenge to the young software specialists is also the contest called “Wings for Your Ideas” which aims at looking for new and original ideas for software products, instrumental tools and technologies. The company will invest in the best ideas and will facilitate their actual implementation in all aspects and all the projects that have participated in the contest shall be published on a special web site and popularized among the companies in the IT sector. The authors of the ideas preserve their copyright over those ideas and all additional conditions for their implementation will be organized in the form of a contract. TechnoLogica was the first to respond to the charity campaign for an elevator for students with disabilities in the FMI building and donated 10% of the needed 100 000 leva. By doing so TechnoLogica hoped to give a good example of charity activities in the IT sector and also expected that the kids with disabilities will receive an equal start for education and professional fulfillment, just like their healthy peers. At the end of 2006 the gathered amount comprised 50% of the sum necessary for building the elevator.
The “Engineering Education – Solid and Working” program started at the end of 2003 as a model for bringing business and education closer and it develops successfully and gives good results for the students as well as for the production enterprises. Even then the initiators of the program forecasted the strong demand for engineers which already is a proven fact. The program started with the donation of a software with a trade price amounting to 2.5 million dollars – an act of support by the American corporation, software producer, SolidWorks. It encompasses six universities and numerous Bulgarian industrial enterprises, the donation thus being only a part of the initiative. The goals of the program are improving the quality of the engineering education, increasing the interest towards it and stimulating the joint practical developments of the universities and the enterprises. Thus, simultaneously will increase the competitiveness of the Bulgarian companies and the opportunity for successful professional fulfillment of such specialist will arise. DiTra, the CAD/CAM center of TechnoLogica and official representative of Solid Works for Bulgaria and Macedonia, made an installation of the donated software, trained the lecturers and supplied studying materials. In April 2006 was published the new SolidWorks textbook – “SolidWorks – User’s Book. Functionality, Examples, Guidelines”. It is sold on preferential prices to students. The industrial enterprises actively participate in the initiative by means of offering guest lecturers, workplaces and practical help. Within the bounds of the initiative are carried out university days, seminars, job fairs, master classes as well as the student contest for working with SolidWorks. The student contest takes place in two categories - for best project done with SolidWorks as well as for speed, skillfulness and ability to work with the software. The contest finals take place at the annual meeting of the friends of SolidWorks where young engineers can demonstrate their abilities in front of potential employers. The winners receive the annual TechnoLogica scholarship. Almost all finalists from the contest find good jobs at prestigious Bulgarian companies. That was the main objective of TechnoLogica and the American software producer SolidWorks – to fill in the gap in the education of engineers and to establish a lasting connection and engagement between employers and students. In the year 2006 another producer of software joined the program – Delcam, who offered licenses of the CAM system FeatureCam to the technical universities in Sofia, Varna, Rouse and Gabrovo. DiTra in its turn taught the professors how to work with the software. DiTra, as
an official representative of SolidWorks for Bulgaria and Macedonia, annually maintains the working capacity of the installed software and right now the universities work with the latest actual version.
As a result of the work and desire of all the participants in the program, the students at three different faculties of the Technical University in Sofia, as well as the Technical Universities in Varna, Rouse and Gabrovo and the University of Food Technologies in Plovdiv study and work with SolidWorks and SolidCAM, just like their colleagues at the Massachusetts Institute of Technology. In the year 2006 DiTra opened a Laboratory for Assistance of Innovative Processes in Industry which has at its disposal the latest software tools. It is equipped with a high class machine for rapid prototyping of Stratasys and a 3D scanner. Apart from the advantage to the Bulgarian companies, the functioning of that laboratory is also related to the next big step in the “Engineering Education – Solid and Working” program and more precisely, its turning into a model for other similar laboratories at the Technical Universities in Bulgaria. Still in 2007 the University of Rousse “Angel Kanchev” became the first academic institution with a similar laboratory. Thus, the first step to the goal was made – for the Bulgarian Technical Universities to be promoters of the latest technologies and centers for their pilot application in the industry, as well as for the scientific potential of universities to meet the necessities and projects of the industrial enterprises. That is a meeting which could bring many benefits to both parties.
Carting for Employees
The main resource in the software branch is the human capital. A spirit of innovation is one of the important criteria in the selection of personnel at TechnoLogica. The firm has created an atmosphere of creativity and it is a given that everyone working here is willing to be a professional and an innovator, and that these qualities must be stimulated. One very important quality that TechnoLogica is proud of is free communication. The management is not only open to innovative and daring ideas by everyone about anything, but it is also proactive in the process of conceiving of and formulating the ideas of its employees. At TechnoLogica, 15% of each employee's working time is dedicated to research and training. Most often it is used for collecting information about new technologies, and for analysis of their potential and applicability. Given the speed at which the field of information technologies has been developing, these require special attention and sufficient resources for up-to-date introductory training. Appreciating the importance of high-quality training, in 1995 TechnoLogica created the first certified training centre for IT professionals in Bulgaria. Professionals there are educated on the basis of specifically designed training programs and backed up by the financial support of the world's software leaders, who certified all the tutors teaching in the programs. The facilitated access to teaching materials on new technologies provides an opportunity for constant and consistent learning on the part of the trainees. Internal training courses have also been developed on issues regarding the latest technologies and the technological tools owned by the company. These courses are modified for clients and also as an element of the technological transfer offered to them by TechnoLogica. What is of utmost importance to TechnoLogica is to work for the formation and development of professionals on an international level. TechnoLogica helps its young employees develop as valuable professionals through arranging for the sponsorship of their certification courses by the leading IT corporations. All employees receive financial support when they marry or have a child. It is a common practice that interest–free loans are provided to employees for the purchase of real estate property.
Community Benefit Projects
In 2007 on the occasion of the 50th anniversary of the National Polytechnic Museum TechnoLogica financed entirely the building of a new web site representing the activity and development of the museum and its branches. Following its strategy for supporting the Bulgarian cultural institutions, TechnoLogica also supported the National Polytechnic Museum in staging the “The Bulgarian Trace in Science” exhibition, prepared by the museum. So that the less popular facts from the Bulgarian scientific development, contained in the exhibition, could reach wider audience, TechnoLogica shall donate copies from “The Bulgarian Trace in Science” to different governmental and academic institutions.
Through the financial aid granted by the company the new and revised edition of the book of Prof. Isaak Passi “Motives of Human Behavior” appeared on the book market at the end of 2006.
Still in 1993, TechnoLogica, absolutely free of charge, for the first time in Eastern Europe used multimedia kiosks for new quality service for the visitors of a public forum, namely the Technological Fair in Plovdiv. The kiosks were equipped with touch-sensitive screens, and provided information about the exhibiting firms, the location of their stands, the exhibition town and the sightseeing places in Plovdiv responding to visitor-entered criteria. TechnoLogica provided for free a similar kiosk to the National Historical Museum, so that children can search by themselves for the information they are interested in and get used to working with a computer. TechnoLogica also created the first compact disc presenting Bulgaria's historical and cultural heritage.
The multimedia presentation of the Bulgarian Army, provided by TechnoLogica at the celebration for NATO's headquarters in Mons, Belgium 30th anniversary called for a new look at Bulgaria. The CD, enhanced with a presentation of the Atlantic movement in Bulgaria, was the official present of the Bulgarian delegation for NATO's 50th anniversary in Washington DC. The project received high acclaim from the Pact's Management.
TechnoLogica stimulates and promotes new modern methods of presenting Bulgaria and Bulgarian institutions to the world. The firm has created pro bono a number of websites for the Atlantic Club in Bulgaria, the Ministry of Internal Affairs, the first website of the Bulgarian Business Leaders Forum, to list but a few.
By donating software (HeRMeS) needed for building a database and releasing an Internet portal for potential employers, as well as for the supply and demand of human resources among the retired military, TechnoLogica referred to the problem of military retirees' social adaptation. The project aims to establish
connections with HR managers, services assisting former military in their adaptation, and with training organizations. A project with a similar objective featured the launching of a new interactive forum in the web-site of the Employment Agency, which contains profiles of job seekers, registered in all employment bureaus in the country. The company developed that forum at a symbolic price with the sole aim to demonstrate the capacities of technologies and their use for the public.
On the eve of year 2000, the Company decided to donate the sources it had spared for equipping a gym for its employees to the “Dara” Christian National Mercy Association in Stara Zagora for supporting parentless children.
Throughout 2006 the employees of TechnoLogica gathered clothes, toys and necessities and donated them to the children from the Medico-Social Care Centre in the town of Pernik. Apart from that all employees offered certain sums from their salaries and to every lev given by an employee the company added three more. The money was used for the purchase of new kitchen furniture for the Care Centre. During the Christmas and New Year holidays the team of TechnoLogica once again made a donation to the kids from the Care Center which was again multiplied by three. In 2007 the gathered amount will be used for the renovation of the sanitary premises at the Center. One of the kids prepared a Christmas card which TechnoLogica sent to all its clients and partners donating part of its circulation also to the needs of the Care Center.
Another charitable project in which TechnoLogica got involved was initiated by BAIT (The Bulgarian Association for Information Technologies) and the “Charity Doer” Foundation. The project is called “In the web” and the aim is to equip with computers and Internet connection the greatest possible number of centers for bringing up and educating parentless children. TechnoLogica participated in the campaign with a donation of color display monitors. At present around 350 kids have access to modern information technologies and make use of the vast amount of information offered in the Internet. Thanks to this stimulus more kids were motivated to make more efforts and act responsibly towards their duties.
TechnoLogica actively participates in the work of six non-governmental organizations (BBLF being one of them) and invests significant resources in them - approximately 1.3% of its annual turnover and two man/months per year for supporting their activities.
CONCLUDING REMARKS
It is too early to evaluate the results of the implementation of such strategies. The impact of the conduct of social responsibility, especially in this aspect of environmental sustainability, can only be realized in a longer period. In any case, and through a perspective that brings us closer to an ex-ante analysis, it is possible to draw attention to the following conclusive notes:
About CGD
Firstly, it should be noted that have been recorded signals of recognition by the Community's action on Caixa activities. Besides the prize in the study "Trust Marks" where Caixa was considered Trusted Brand in Portugal and highlighted its role in the environmental sphere, the program “O Planeta Agradece” was awarded the prize "effectiveness in social responsibility." Another public recognition comes from studies of BrandScore which show the association of CGD Brand Social Responsibility and a strong brand association with Culture.
How far this activity has had an impact on the market and the performance of Caixa is a matter for future research.
Second, is to recognize the importance of tradition in terms of Social Responsibility. Companies where management strategy always believed in ethical and solidarity with their colleagues and with the Community to share these processes as an important "capital".
Thirdly, Social responsibility is certainly not just philanthropy, but can / should also include this activity. Increasingly, social responsibility, in general, and promoting environmental sustainability, in particular, carries out an operation more effective if integrated into the global perspective of business and relationship with their surroundings.
Finally, the CGD case highlights the advantages of establishing a coherent and integrated strategy, with a thread that organizes the various lines of action and their actions. In this case, the establishment of the whole strategy around climate change avoids dispersion and promotes the image of a policy or clear objectives. It reinforces the brand image with a seal of pertinence and internal coherence that enables more effective performance.
About TechnoLogica
The wide variety of initiatives and activities undertaken by TechnoLogica demonstrates that the company has assumed responsibilities beyond serving customers, profit generating and compliance with law. We could identify several important benefits of CSR to the company.
First, as a result of its activities, the company has established good reputation as a responsible business, which may be linked to the company’s increased market share and superior business performance. TechnoLogica received both national and international recognition of its high technological level and exceptional business ethics. The Business Ethics Certificate was awarded to TechnoLogica personally by Prince Charles in the year of 2003.
Second, as a socially responsible business TechnoLogica helped to solve important social problems and thus gained the admiration of its customers, business partners and local community. In addition, TechnoLogica
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supported various cultural initiatives as well as government and non-government institutions and organizations, which play important role for developing Bulgarian civil society and economy.
Third, the company has improved significantly working climate and is able to attract and retain highly qualified professionals and to increase employee motivation, satisfaction and productivity.
Forth, TechnoLogica creates opportunities for young people in Bulgaria to stay in the country and to contribute to its future development.
And finally the CSR initiatives and activities undertaken by TechnoLogica reinforce substantially its business strategy and contribute significantly to achieving sustained competitive advantage in the marketplace. The company has adopted a holistic approach to implementing CSR actions and has successfully integrated them within its business strategy.
Final Note
After some individual considerations, it is necessary to refer some important ideas about global concerning. First, it is necessary to join some ideas about what is relevant in these two cases that give a particular idea about both companies in both countries, convergent and divergently.
So, it is first necessary to say that both companies are concerned about the way to show society the idea they have about the way they are related to society.
Second, it seems important to highlight that corporate social responsibility must not be confounded with philanthropy. The responsible positioning of both companies must have some results in terms of the performances of companies. And consequently, there is yet lot of research needed in terms of constructing economic indicators to reveal the impacts of the corporate social responsibility actions on the profits and other economic results of firms activity.
Third, this study also reveals the importance of developing a research on the themes of business ethics in companies and the respective impact on organizational structure in companies and their relationship with stakeholders, both internal and external to the company.
Finally, this study is mostly an empirical based research. However, it also reveals that there are also theoretical issues related to corporate social responsibility that must be considered in the agenda of the researchers and scientists interested on these fields of investigation. For instance, there is a very innovative idea that must not be let out of consideration. Supposing the existence of some companies that create positive externalities to the society as it is the case of cultural organizations. In this case the economic theory prescribes that society must subsidize these institutions in what can be seen as an application of a negative Pigouvian tax. In this situation, what can be the corporate social responsibility? What kind of actions shall have these companies in relation to society? And how can social responsibility be defined in this opposite sense? Should society support indeed these companies in terms of social responsibility, in this sense?
ACKNOWLEDGEMENT
The second author is member of SOCIUS Research Centre and the third and fourth authors are members of UNIDE-IUL Research Centre, which support they thank very much.
REFERENCES
1. Melo Neto, F. & Froes, C. (2001). Gestão da Responsabilidade Social Corporativa: O Caso
Brasileiro. Rio de Janeiro: Qualitymark.
2. Brundtland Report (1987). Our Common Future. Oxford: Oxford University Press
3. CECOA (2004). Responsabilidade Social das Empresas – Estado da Arte em Portugal, 2004. Centro de Formação Profissional para o Comércio e Afins, Lisboa.
4. CGD (2009). 133 Anos a construir O Futuro: Um Modelo sustentável. Entrevista Fernando Faria de Oliveira – O Futuro Sempre Presente, Azul , 39, 22-37.
5. CGD, Relatório Sobre o Governo da Sociedade - 2008. 6. CGD , Relatório de Responsabilidade Social.
7. Site CGD, www.cgd.pt
8. Site TechnoLogica, http://www.technologica.com
9. DELOITTE (2003). O Desafio do Desenvolvimento Sustentável nas Empresas Portuguesas, Management Solutions, Relatório, Deloitte, Lisboa.
10. KPMG (2007). Estudo da KPMG sobre a Publicação de Relatórios de Sustentabilidade em Portugal, KPMG Advisory, Consultores de Gestão; BCSD Portugal; Informa, D&B.
